A local economist has descried the rising of copper prices on the international as indication that the Zambian economy is still viable and has the potential of recording more growth.
Yusuf Dodia has since urged mine companies not to lay off their workers as the sector is expected to improve and become more profitable.
Speaking in an interview in Lusaka today, Mr. Dodia said the picking up of copper prices on the international market will play an important role towards revamping all economic activities in Zambia.
He explained that this will also make the mining industry viable and attract more investors to the country hence contributing to the economic development.
He noted that copper being an essential commodity for Zambia, many other developmental sectors were likely to be affected if copper prices continued to tumble.
Mr. Dodia, who is Private Sector Development Association Chairperson, disclosed that Zambia should benefit as China is making headways in putting up measures aimed at responding to the current global financial crisis.
He said there is need for the country to take advantage of China’s plans and become more productive in its copper production due to the rise in copper prices adding that China depends much on Zambian Copper.
Mr. Dodia further challenged mining companies in the country to open new mining plants and continue to play a role towards economic development of the country.
He also called upon other investors that have plans to open new mines not to relent as the copper prices are showing signs of improving even more.
Yesterday Bank of Zambia governor Dr. Caleb Fundanga said the country’s economy is recovering due to the recent positive movements in the global economy resulting in copper prices improving to US$ 5, 000 per tonne band from about US$ 2,900 per tonne in December last year.
ZANIS
Yeah, viable in Kapoko and Miti’s pockets!
This is a poor indicator. Viability of the economy should not be linked to a single commodity but rather on the general improvement in a number of sectors like caleb put it. It is however a good warning to the Zambian Govt that time to diversify is now. Use copper money to improve other sectors of the economy when copper prices are still fractuating within limits that allow realisation of profits from the commodity. The problem with some of the characters in Govt is that they think copper is a renewable resource. It is dishearting to note that in Zambia there are alot of things that need simple common sense but the Govt seem not to get it. Change is inevitable if Zambia is to start posting meaningful development. Under this current regime we will keep on moving in circles.
Yusuf Dodia is neither an economist nor financial expert. The rise in copper prices is nothing new and not indicative of the future viability of our economy. It merely serves to reaffirm the fact that our economy’s fortune is inextricably linked to copper prices. Nothing to write home about.
Lets wait and see.The game is on.
What an economist!!!! This man is not an economist because he has failed to substantiate his assertions. How can the price of copper be an indicator of economic gains? Infact it is an indicator of unstable economy becaause it means the economy is susbtible to copper price volitality, hence difficulties in planing for future. This is what Zambia economy is suffering from. The economy 100 percent depends on copper price. Infact there is no need to oppen other mines because the country will not benefit but chinea will be there stocking the copper from Zambia. Beware of this man….he his telling lies. Wake up Zambians.
#2 thru #5, you are very right in writing off Mr Dodier. I am really surprised that he can make such simplistic assertions that do not even have an empirical backing. He thinks viability can come about with one commodity which in essence is merely a raw material. I am sure he is one of the suppliers in the mines and thats how he is measuring viability since his kantemba will now boom in supplying imported spare parts ( promoting foreign manufacturers) which will be inflated to make a huge profit at the expense of Zambian manufacturing base. It would have made sense if he pointed out the potential in value addition on mining products which Prof Chirwa highlighted in the Post. To add to your list, #1, viability is in Mr Dodier’s pocket.
#2 good one
” The Zambian economy is still viable – Dodia ”
What he is really saying, is that we should keep on doing the same thing that landed the economy in this mess. Attracting more FDI, or have mines expand.
This will only speed up the exploitation of Zambia’s resources, and with nothing to show for it.
There has to be a different economic policy, not just an increase of economic activity.
Dodia is much more authoritative than most of you condeming him and is not shy to influence decisions than the so-called professors of economics.The Zambian economy relies on copper as it accounts for 80percent of foreign earnings and determines the fate of other sectors. Dodia is right and most of you empirical economic bloggers are ill-informed. It is just the way the reporter captured the story that is wrong.journalists have difficulties framing economic stories and make their sources look dull.
Ya, the reporer adds to Dodia’s poor analysis making the story incomprehensible alltogether. It just does NOT add up.
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